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lzo
Level 2

Stocks (RSU, Options, Capital gain/loss) question

Hello,

Question - and i apologize as i'm new to this:

 

This year I had some stock RSUs vest with the company I work for.  For the sake of simplicity, i'm going to just use bogus numbers, but the principle is the same:

 

50 stocks vest at $500 each - $25,000 total.  The company deducted about 25% of those stocks and sold them to cover taxes at the vest.

 

Since vesting, those stocks are now worth $35,000

 

This year, I have also played around (in a separate broker account) with stock options.  I have lost $10,000 this year.

 

My question - is do the $10,000 in losses offset the gains of $10,000 ($25k to $35k)?  And are the gains taxed at the conclusion of the year based on the stock value, or are they only taxed when i sell the stock?

 

I know there's a $3000/yr maximum capital gain loss per year (that can roll over).

 

I'm assuming the stock vest of $25k is just taxed as income, not a 'capital gain', but that the increase from $25k to $35k will be capital gain, BUT only if i sell the stock (as long as i just hold it, there's no tax) right?

 

Basically - I'm wanting to offset the $10k loss from a tax standpoint, because I don't want to be rolling over the $10k capital loss for the next 4 years at $3k/year.

 

Would I have to cash out $10k of my stocks to offset the $10k loss with stock options?

 

Thanks so much!

3 Replies
martinmarks
Level 10

Stocks (RSU, Options, Capital gain/loss) question

Yeah, your loss is going to be carried forward unless you sell and have recognized gain.

lzo
Level 2

Stocks (RSU, Options, Capital gain/loss) question

Thanks for the response; 

So if I sell stocks for $10k in profit, that will fully offset the $10k in loss from the stock OPTIONS?

Or are they taxed differently?

TomD8
Level 15

Stocks (RSU, Options, Capital gain/loss) question

"I'm assuming the stock vest of $25k is just taxed as income, not a 'capital gain', but that the increase from $25k to $35k will be capital gain, BUT only if i sell the stock (as long as i just hold it, there's no tax) right?"

 

Correct.

**Answers are correct to the best of my ability but do not constitute tax or legal advice.
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